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Fresh travel tax scheme worth $1bn sparks protest

The Editor by The Editor
November 4 2025
in Business
A A
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The Nigeria Civil Aviation Authority (NCAA) has concluded plans to introduce a new $11.50 levy on all international air tickets for inbound and outbound passengers, a move that could yield over $1bn in revenue over the next two decades, and has sparked concerns among operators.

The new charge, classified as a security fee, is tagged the Advance Passenger Information System (APIS) levy.

It will be added to the existing $20 security charge, bringing total security-related ticket fees to $31.50 per passenger.

According to the NCAA, the charge aims to strengthen aviation security and enhance passenger data management in line with international standards. The fee will remain in force for 20 years, with proceeds directed toward improving safety infrastructure and passenger profiling systems across Nigerian airports.

Findings from the African Airline Association indicate that Nigeria ranks as the third most expensive country in Africa in terms of air ticket taxes and charges.

Airline operators have repeatedly complained about what they describe as multiple taxation by the Nigerian government, warning that it continues to erode their profitability and competitiveness.

Industry analysts and passengers have also expressed concerns that the new levy will further drive up airfares, making international travel increasingly unaffordable amid rising inflation and foreign exchange volatility.

Based on 2024 data showing 4.3 million international passengers — a 6.5 per cent increase from 4.04 million the previous year — the NCAA could generate approximately $49.45m annually once the levy takes effect in December 2025. Over 20 years, total revenue is projected to exceed $989m (₦1.46tn) at the current exchange rate of ₦1,480 per dollar.

A memo signed by the NCAA Director-General, Capt Chris Najomo, and addressed to airlines stated that the APIS charge would be automatically deducted at the point of ticket sale.

“Effective December 1, 2025, the APIS charge applies to all tickets issued for travel to and from Nigeria,” the memo reads. “The charge of $11.50 per passenger will be collected at the point of sale and remitted by the lifting airline to the NCAA.”

Airlines are expected to update their ticketing systems ahead of implementation to accommodate the new fee.

The plan has drawn sharp criticism from aviation stakeholders. President of the Aircraft Owners and Pilots Association of Nigeria, Alex Nwuba, described the new levy as “another blow to travellers and Nigeria’s already burdened aviation sector.”

Nwuba acknowledged that APIS is a globally recognised border security system but argued that most countries absorb its operational cost rather than transferring it to passengers.

“This new fee comes at a time when Nigerian travellers already pay some of the highest cumulative ticket charges in the world,” he said.

He listed existing levies, including a five per cent Value Added Tax, another five per cent Ticket Sales Charge, Passenger Service Charge by FAAN, security and fuel surcharges, airport development levies, and navigation fees.

“Adding the APIS fee makes flying even more prohibitive, especially for families, students, and business travellers,” he warned. “It discourages tourism and increases operational risks for airlines already struggling with high costs and regulatory uncertainty.”

The President of the Association of Foreign Airlines Representatives in Nigeria, Kingsley Nwokeoma, described the APIS charge as an unnecessary additional burden.

“The APIS initiative is welcome, but must it come with charges? Travellers already complain about high ticket costs in Nigeria, which are incomparable to neighbouring countries,” he said.

He urged the government to review the policy, warning that its 20-year duration could worsen the hardship of international travellers and stifle tourism and investment.

“Passengers in some cases pay more in taxes and fees than the airfare itself,” he added. “The government should not worsen the burden on already struggling Nigerians.”

Veteran aviation expert Capt John Ojikutu queried the rationale for introducing a new security fee despite an existing $20 charge.

“Security is security. What’s the difference between this new $11.50 and the $20 already being collected?” he asked. “If the NCAA insists on this, Nigerian carriers like Air Peace may face reciprocal fees abroad.”

Similarly, retired pilot Capt Muhammed Badamosi said the NCAA owed travellers a clear explanation for the new levy, warning that airlines might consider legal action or appeal to the National Assembly if the agency fails to justify it.

“There must be transparency. If the NCAA cannot defend this charge, stakeholders should seek redress,” he said.

Secretary-General of the Aviation Roundtable, Olumide Ohunayo, called on the NCAA to rethink the decision, arguing that imposing an extra fee on top of the $20 security charge could drive passengers to neighbouring airports with cheaper fares.

“We shouldn’t tax ourselves out of the market,” he said. “The APIS system isn’t new — improving it shouldn’t mean burdening travellers further.”

Ohunayo urged the NCAA to suspend the new levy, at least temporarily, given the prevailing high exchange rates and economic challenges.

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